My first policy is rescinded

[billyb]

You are not correct. I have had numerous claims paid during the contestable period. Some were small face amount FE policies and some were larger face amounts. If the client is truthful during the underwriting process the claim will be paid. This recent decision by Columbian was a total surprise to me. I talked with an underwriter before writing the application and did a PHI. All medications and all impairments were disclosed. I made the comment about the funeral home because they were so firm about accepting the policy as payment and I figured it was because they have seen Columbian deny payment before.

 

[Birdman300]

Are you saying you've worked with carriers who paid the claim on an insured who died in the contestable period without the carrier even reviewing medical records? If that's the case, then I'll be adding them to my toolbag on Monday morning.

 

[billyb]

Never said the carrier didn't investigate. Did say that I have had numerous claims paid during the contestable period. In fact I have never had a claim denied as far as I can remember.

 

[FinalExpenseDojo.com]

One of my agents had a client die within the contestibility period & Americo paid the claim. The check was mailed within 90 days from the day the policy went in force. It was over $15,000 too.

 

[Speck]

Actually, the client would be better off with a guaranteed issue if they die within the first two years if the company is going to rescind the policy. I know the agent wouldn't ever opt for a two-year waiting period over first-day coverage, but if you knew that the policy would get rescinded if the client dies within two years, all they get back is what they paid in, whereas the GI usually pays an additional 10% or more.

 

[Baseball7]

Does this discussion mean that there are some final expense policies that do not have a contestability period?

No, its the law not the company.

 

[goillini52]

Actually, the client would be better off with a guaranteed issue if they die within the first two years if the company is going to rescind the policy. I know the agent wouldn't ever opt for a two-year waiting period over first-day coverage, but if you knew that the policy would get rescinded if the client dies within two years, all they get back is what they paid in, whereas the GI usually pays an additional 10% or more.

If only we could see into the future.

 

[Life Hawk]

I have not had any claims denied. I have had 6 payout and have two pending now. (One died on effective date)

Columbian doesn't have the best reputation on these mattera

I use them and you are correct. This is not, nor will it ever be a "go to" company for me. They do have a reputation in the industry.

 

[Baseball7]

There is probably no way as a sole agent to quantify or fairly say “this company” does or doesn’t pay. I’ve has several Transamerica claims paid, some not. My single claims with Aetna and Americo were not paid. Does that mean Aetna and Americo don’t pay? Not fair to make that judgement if you ask me.

 

[TampaHound]

Actually, the client would be better off with a guaranteed issue if they die within the first two years if the company is going to rescind the policy. I know the agent wouldn't ever opt for a two-year waiting period over first-day coverage, but if you knew that the policy would get rescinded if the client dies within two years, all they get back is what they paid in, whereas the GI usually pays an additional 10% or more.

I actually had this very conversation with a client at one time. Damned if they didn't die something like 15 months later.